Positive Tests Lead to Negative News for Casinos in the US

By now, nobody in the world is untouched by COVID-19. The pandemic just keeps hanging around and is once again threatening to put life on hold, particularly in a few hard-hit states. The US legal sports betting industry has been especially negatively affected with closures of brick-and-mortar facilities and the hibernation of major sports around the world and it doesn’t look like the threats are over for the industry just yet.

Just as the world seemed to be coming back online and industry in the US starts to open up, recent coronavirus spikes have forced the closures of some casinos yet again. Uncertainty keeps following COVID-19 with regards to the normal operations of casinos around the country. Uncertainty is also putting in question the viability of pro sports leagues that are set to provide fans some much-needed relief and sportsbooks some critical, real-life, marketable events.

Areas of concern

Last week saw an enormous spike in COVID cases in the Southern and Western US states particularly – right where the NBA and MLS are holding their “bubble seasons” and where MLB teams will be holding training camps ahead of their abbreviated 60-game season. Florida is currently in the midst of a coronavirus explosion, forcing many businesses in the area to shut their doors. In Florida, casinos across the board are in danger of being forced to close for an indefinite period of time.

Arizona has seen an unfathomable increase in cases as well, leading to Gila River Indian Community closing three of its Phoenix-area casinos for the second time since the Virus hit. Two employees of Legends Diner in Soaring Eagle Casino in Michigan have tested positive, Pittsburgh's Rush Street’s Rivers Casino, and some Mississippi retail betting facilities have been ordered to close their doors as well thanks to positive tests among employees.

Nevada

Nevada has been one of the more aggressive states with regards to their re-opening plans - Las Vegas specifically. The Strip opened their iconic casinos on June 4 with strict guidelines in place. Masks were only mandated inside casinos June 24 after a serious spike in the state's cases, however.

“By June 24, we had already hit all the shutdown metrics. While the face mask mandate was necessary, it was at best a stopgap measure designed to keep the casinos open a couple of weeks while we ‘collect data’ and see if it works. But it was already too late for that. If virus containment was the priority, we would have been shut down by June 24. The reality is that the only reason Nevada is still open right now was for the July 4th cash grab,” said Jeff Hwang, a best-selling author, and industry analyst/consultant.

Another red flag was flown Friday when Nevada Gov. Steve Sisolak ordered bars to return to Phase 1 restrictions under the state's reopening plans.

"We know that COVID-19 can easily spread when people are congregating for long periods of time, like inside a bar," Sisolak said in announcing the new measures. "In states where we have seen significant spikes, such as Arizona, Texas, and Florida, they have all taken actions to roll back bars. Recently, Dr. Fauci, the U.S.'s top infectious-disease expert, advised that congregating in bars poses a significant risk and is one of the most dangerous things people could do right now. We must heed his advice."

Rumors are swirling about more Nevada casinos closing their doors once again, obviously out of an intense need to get a hold of the coronavirus pandemic.

The further need for a strong online betting platform

It is difficult to find many positives for the coronavirus crisis but businesses and citizens alike are hopefully learning from the madness that plagues the country every day. For the legal sports betting industry, it is the further need for a strong online betting platform. The industry's survival appears 100% reliant on a company providing betting opportunities for its customers even when visits to retail facilities are not possible.

States like Rhode Island have begun to wake up to this fact. The state changed its legislation late last week to allow for customers to sign up for mobile apps remotely, rather than having to sign up in-person at brick and mortar facilities.

States like Nevada could learn a thing or two from the Rhode Island model and quickly move for a similar sign-up procedure. States like New York, that don’t currently have a mobile sports betting platform could also join the fray and soon let bettors place wagers from the comfort of their homes.

Industry ramping up

It is an important time for the US legal sports betting industry – it looks as though pro sports in North America are going ahead with or without them. The next few weeks will tell us a lot about the state of the States and the state of the legal sports betting industry.

It’s “adapt or fade away” time for gambling providers. We’ll see which states and which betting operators learned during this time of the industry ramping up.